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Reading: UK to Pay Mauritius £101 Million a Yr to Use Navy Base
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StockWaves > Business > UK to Pay Mauritius £101 Million a Yr to Use Navy Base
Business

UK to Pay Mauritius £101 Million a Yr to Use Navy Base

StockWaves By StockWaves Last updated: May 23, 2025 5 Min Read
UK to Pay Mauritius £101 Million a Yr to Use Navy Base
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(Bloomberg) — The UK agreed to cede an Indian Ocean archipelago to Mauritius whereas retaining management of a strategic navy base on one of many islands, ending a long-running negotiation that had grow to be some extent of controversy for British premier Keir Starmer.

Below the cope with Mauritius, the UK can pay a median of £101 million ($136 million) yearly for continued use of the power, Starmer advised a information briefing on Thursday, within the first affirmation of the phrases of the pact. The UK stated the web current worth of the funds is £3.4 billion, because of the means authorities accounting measures long-term investments.

Finalizing the deal achieves a key international coverage purpose for Starmer as a result of it ends the uncertainty over the way forward for the bottom on Diego Garcia, a strategically invaluable British-US facility that offers fast entry to East Africa, the Indo-Pacific, the South China Sea and the Persian Gulf. It was used throughout American campaigns within the Center East and Afghanistan and likewise hosts a vital satellite tv for pc communications system.

“The bottom is among the most vital contributions that we make to our safety relationship with the USA,” Starmer stated on the briefing. “We needed to act now as a result of the bottom was below risk.”

British and US management over the bottom had been solid into doubt by the UK’s plan to cede the Chagos Islands to Mauritius, which adopted a 2019 ruling by the Worldwide Court docket of Justice that Britain’s continued administration of the islands was illegal. Mauritius, a nation of about 1.3 million folks, in recent times has strengthened ties with China, fueling US worries about Beijing’s increasing navy and financial affect within the area. 

The Chagos Islands deal has been controversial for Starmer, given the massive sums of cash that Britain can pay to Mauritius to retain management of Diego Garcia. The UK’s foremost opposition Conservative Get together and Nigel Farage’s Reform have recurrently attacked Starmer over the deal, with Farage beforehand calling it a “give up.”

The settlement introduced Thursday ends six months of further talks between the 2 international locations, after the brand new Mauritian authorities led by Premier Navinchandra Ramgoolam expressed dissatisfaction over an preliminary accord introduced on Oct. 4.

“It’s an ideal victory for us and the Mauritian nation,” Ramgoolam stated. “It completes the method of decolonization that began in 1968.”

The announcement of the deal was held up on Thursday, nonetheless, by a final minute courtroom problem from a Chagos-born British nationwide who claimed that the accord would violate the rights of the indigenous folks of the Chagos Islands who had not been correctly concerned within the negotiations.

The authorized problem was the final probability for Chagossian folks “to safe entry to their homeland,” attorneys for the claimant, Bertrice Pompe, stated in courtroom filings.

“The extreme obstacles which might be confronted by British nationwide Chagossians, who don’t maintain Mauritian nationality, with reference to participation in the way forward for their homeland must be addressed,” they stated.

However the case was thrown out after the federal government argued it interfered with nationwide safety points and international relations.

In 1965, Britain established the Chagos Islands as a separate territory, paid Mauritius £3 million in compensation and agreed to let the US function a navy base there in return for a reduction on nuclear missiles and joint use of the power. 

Round 1,360 Chagossians had been expelled from Diego Garcia, the most important island, to make means for the bottom, which started operations in 1973. Most ended up within the UK, Mauritius and the Seychelles, the place they suffered discrimination and got little assist to rebuild their lives, in response to Human Rights Watch. 

The Chagos Islands have additionally been a focal point in UK-US diplomacy given earlier query marks over whether or not US President Donald Trump would again the settlement. That hypothesis was ended earlier this yr when Trump stated he was “inclined to go forward” with the choice, talking throughout a gathering with Starmer on the White Home.

–With help from William Selway and Alister Bull.

(Updates with response and context beginning in fourth paragraph.)

Extra tales like this can be found on bloomberg.com

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